Nathan Tinkler declared bankrupt over jet sale

Hard on the heels of attempts to revive his coal industry credentials, controversial businessman Nathan Tinkler has been declared bankrupt over funds owed from the sale of his luxury private jet, although the ruling has been stayed pending a possible appeal.

Nathan Tinkler has been fighting since mid-last year to stave off the bankruptcy claim from GE Commercial. Photo: Getty Images

In November 2012, GE Australasia appointed Taylor Woodings as the receiver of TGHA Aviation. He subsequently impounded Mr Tinkler's Dassault Falcon 900C in Singapore and Agusta A109S helicopter in Brisbane.

A former Tinkler staffer was quoted at the time as saying his boss "loved the jet like a child" and "used the helicopter like a taxi".

On Tuesday morning, Justice Gleeson in the Federal Court declared Mr Tinkler bankrupt, although the ruling has been stayed until this afternoon, since Mr Tinkler's lawyers have indicated they will seek to appeal.

The bankruptcy ruling is the latest in a litany of legal actions involving Mr Tinkler, which at one point included having an arrest warrant issued over the liquidation of his Patinack Farm equine venture.

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It follows recent efforts to re-enter the coal mining industry, where he made his original fortune, with the planned purchase of a NSW coal mine. Earlier this month, interests associated with Mr Tinkler raised $20 million to part fund the purchase of the Dartbrook coal mine in the Hunter Valley.

If the bankruptcy ruling stands, it may derail Mr Tinkler's comeback plans, since he was appointed a director of Australian Pacific Coal, the entity through which he bought the Dartbrook mine, last October. Bankrupts are not allowed to be company directors.

Under the judgment, the bankruptcy would take effect from July 16, 2015, the date of the original claim by GE Commercial.

Mr Tinkler has sought to dispute the veracity of the bankruptcy notice, claiming it is defective largely over the currency converter used.